The target which we predicted in yesterday's analysis has been hit. The pair is still expected to trade in higher range. The pair posted a pullback from 0.9765 (the high of August 4), and is still trading above its rising 50-period moving average. The relative strength index is mixed with bullish bias. Even though a continuation of the consolidation cannot be ruled out, its extent should be limited.
The US Labor Department reported an addition of 209,000 nonfarm payrolls in July, more than +180,000 expected. Average hourly earnings for private-sector workers increased 9 cents in July to $26.36 an hour, the largest monthly increase since October. For the fourth straight month, the wages increased 2.5% on a year-on-year basis. Besides, the jobless rate declined to 4.3% from 4.4% in June.
To sum up, while the price holds above 0.9700, look a further advance to 0.9765 and 0.9785 in extension.
Chart Explanation: The black line shows the pivot point. The present price above the pivot point indicates the bullish position and below the pivot points indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy: BUY, Stop Loss: 0.9700, Take Profit: 0.9765
Resistance levels: 0.9765, 0.9785, and 0.9820
Support levels: 0.9665, 0.9630, and 0.9600
The material has been provided by InstaForex Company - www.instaforex.com